Is a Late Fee Applicable for Delayed ITR Filing if Your Tax Liability is Nil?
When a taxpayer fails to file an Income Tax Return (ITR) before the due date, they are left with the only option called a belated return, which can be filed before December 31, 2025. However, one cannot file a belated return under the old tax regime. This means you will lose all the tax benefits offered under the old tax regime.
Under the new tax regime, taxpayers do not need to pay any taxes on a salaried income of up to Rs 7.75 lakh, due to the tax rebate of Rs 25,000 under section 87A and a standard deduction of Rs 75,000 under section 16. So, if a person has an income up to Rs 7.75 lakh, the tax liability is nil, and you do not file ITR before the due date, would you still need to pay the late fee?
Tax experts say that if your income is above the basic exemption limit, you are required to file the ITR. Under the new tax regime for FY 2024-25, the tax exemption limit is Rs 3 lakhs. If you fail to file ITR before the due date, a late filing fee under Section 234F of Rs 1,000 will be applicable if the income is up to 5 lakh and Rs 5,000 if it is above Rs 5 lakh.
In the current situation, the ITR due date is September 16, 2025. So, if the return is filed late, after September 2025, the late filing fee is applicable. The late filing fee depends not on your tax amount but on whether you filed your return on time.
Therefore, even if you do not have any tax liability under the new tax regime, you would still be liable to pay the late filing fee if you file a belated return. However, if your income is below the exemption limit, you do not need to pay the late filing fee for filing a belated return.
